Sale of business / asset ???

kellyp

Hiya, I am having a brain melt down....

A client of mine had a business which was a children's entertainment bus.
There is a trading loss of 2K. The client sold the bus and made a gain of £13K.

Is capital gains tax due on the 13K (less the CG allowance of £10600)?
or is the CGT based on the sale of the whole business (i.e. 13K less 2K loss, less CG allowance?)

Any advice is much appreciated
thanks in advance

kellyp

Thanks for your reply. The bus was actual purchased and sold in the same tax year (they were only trading for 9 months). Therefore will the bus sale still be taxable as income tax or CGT?

Thanks in advance!!